PROBLEMS AND PROSPECTS OF THE WORLD BIOTECHNOLOGICAL MARKET DEVELOPMENT

Abstract

Introduction. In recent decades, biotechnology industries have created the preconditions for the development of high-tech sectors in developed countries and provided opportunities for the transition to a model of sustainable development. According to experts, biotechnology in the coming decades will help improve human life, capable of becoming one of the fastest growing and most profitable sectors of the XXI century. The industry is high-tech, which determines the specifics of the innovation process and investment. The development of biotechnology is impossible without the coordinating and motivating role of the state, which will create a favorable environment for the development of biotechnology industries - an appropriate ecosystem, which will be an environment for effective interaction between all market participants. The formation of such an ecosystem depends on the formation of an effective institutional environment, the availability of resources and economic entities and the formation of effective interaction between participants through the creation of networks and the development of appropriate organizational forms.Purpose. The purpose of the article is to determine the features, problems and prospects of the global biotechnology market.Results. Features of geographical and commodity structure of the world biotechnological market are considered. It is determined that the conditions for the development of the biotechnology market are diversified sources of funding, but also relevant research and development resources, existing biotechnology companies capable of production, infrastructure that will promote the commercialization of finished products, intellectual property protection system. The factors of supply and demand are determined and it is substantiated that without purposeful state support the development of the biotechnology market is impossible.Originality. Factors of supply and demand in the biotechnological market are determined. Factors in demand for the biotechnology market in developed countries are high health care costs, high manufacturability of all industries, the desire to implement resource-saving and environmentally friendly technologies, the development of alternative energy. The main factors of supply in the biotechnology market are the availability of biotechnology companies with highly qualified specialists, the level of state support, the availability of basic technologies and the development of funding sources.Conclusion. The deep recession in the modern world economy and internal imbalances will lead to positive changes in the biotechnology industries, which will affect both product and geographical structure. The main drivers of growth will be developing countries as a result of stimulating policies to support biotechnology and cheaper resources. The dominant position in all markets will be occupied by developed countries as a result of significant investment in research and development, but large TNCs will increasingly take advantage of outsourcing, which will create additional opportunities for developing countries. The consolidation of key TNCs in biotechnology markets will be enhanced by their desire to integrate into their structure or to cooperate with research institutions and small innovative companies in various fields of biotechnology. Therefore, it is important for each country to develop its own mechanisms to intensify the development of biotechnology industries given the resource potential, production capacity and future markets.